FOR IMMEDIATE RELEASE
Date: April 22, 2005
Contact: Kathleen Walsh Carr
202.772.3711
Abigail Adams national Bancorp Reports record first Quarter Earnings
Washington, DC - Abigail Adams National Bancorp, Inc. (NASDAQ:AANB), the parent
holding company of The Adams National Bank, announced first quarter earnings for
the period ended March 31, 2005. Net income for the quarter was $922 thousand, a
$104 thousand or 12.7% increase over net income of $818 thousand for the first
quarter of 2004. Diluted earnings per share were $0.28 for the first quarter of
2005 compared to $0.25 per share for the same period in 2004, an increase of
12%. Return on average assets was 1.51% and the return on average equity was
14.93%, compared to 1.50% and 14.15%, respectively, reported for the first
quarter of 2004.
Total assets were $246.2 million at March 31, 2005, an increase of $26 million
over the quarter ended March 31, 2004, centered in growth of the loan portfolio
to $174.2 million at March 31, 2005, an increase of $15.9 million, or 10.1% over
the same period last year. Deposits were $210.6 million at March 31, 2005, a
$28.2 million or 15.4% increase from March 31, 2004.
Asset quality for the first quarter continued to strengthen as non-performing
assets to total assets improved to 0.43% versus 1.74% from the same period last
year. The allowance for loan losses was 254.1% of non-performing loans as of
March 31, 2005 as compared to 58.4% at March 31, 2004. At quarter end, the
allowance for loan losses equaled 1.56% of total loans.
Total interest income for the first quarter of 2005 increased 14% to $3.7
million, compared to $3.3 million for the first quarter of 2004. Noninterest
expense increased 8% concentrated in personnel expense, reflecting the
investment in lending staff to meet strong loan demand. Net interest margin
remained a healthy 5.38% in the first quarter of 2005 compared to 5.39% in the
first quarter of 2004.
As a result of the continued strong performance of the Company, the Board of
Directors declared a quarterly dividend of $0.125 per share paid on March 31,
2005 to stockholders of record on March 15, 2005. In addition, the Board of
Directors paid a 10% stock dividend on January 14, 2005, to shareholders of
record on January 3, 2005.
The Adams National Bank is focused on serving minorities, small businesses and
not-for-profit organizations in the Washington, DC area. The Adams National Bank
offers a full line of banking services including business and real estate loans,
as well as deposit services. All information for the period ended March 31, 2005
has been derived from unaudited financial information.
SOURCE: The Adams National Bank
ATTACHMENT: Selected Financial Data
<Page>
Abigail Adams National Bancorp, Inc. & Subsidiary
Selected Financial Data
March 31, 2005 and 2004
(Unaudited)
Three Months Ended:
-----------------------------------------------
3/31/05 3/31/04
-----------------------------------------------
Earnings: (In thousands, except per share data)
Interest income $3,747 $3,286
Interest expense 619 459
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Net interest income 3,128 2,827
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Provision for loan losses 65 105
Net interest income after provision for loan losses 3,063 2,722
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Noninterest income 428 455
Noninterest expense 1,964 1,818
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Income before taxes 1,527 1,359
Provision for income tax expense 605 541
---------------------- ---------------------
Net income $922 $818
====================== =====================
Basic earnings per share $0.28 $0.25
Diluted earnings per share $0.28 $0.25
Dividends paid on common shares $0.125 $0.114
Average shares outstanding - basic 3,322,820 3,315,777
Average shares outstanding - diluted 3,331,373 3,329,121
Consolidated balance sheet:
Assets:
Cash & due from banks $11,599 $6,643
Short-term investments 7,664 3,678
Investment securities 49,830 48,481
Loans 174,226 158,314
Less: allowance for loan losses (2,721) (2,232)
Other assets 5,623 5,351
---------------------- ---------------------
Total assets 246,221 220,235
====================== =====================
Liabilities:
Deposits 210,556 182,387
Short-term borrowings 2,207 3,044
Long-term debt 6,899 9,805
Accrued expenses & other liabilities 1,651 1,479
---------------------- ---------------------
Total liabilities 221,313 196,715
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Stockholders' equity:
Capital stock 33 30
Surplus 22,625 17,241
Retained earnings 2,250 6,249
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Total stockholders' equity 24,908 23,520
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Total liabilities & stockholders' equity $246,221 $220,235
====================== =====================
Other financial information:
Return on average assets 1.51% 1.50%
Return on average stockholders' equity 14.93% 14.15%
Net interest margin 5.38% 5.39%
Net interest spread 4.88% 4.95%
Efficiency ratio 55.23% 55.39%
Allowance for loan losses to loans 1.56% 1.41%
Nonperforming assets to total assets 0.43% 1.74%
Allowance for loan losses to nonperforming assets 254.06% 58.40%
All per common share data and dividends paid have been restated for a 10% stock
dividend declared on December 21, 2004 and paid on January 14, 2005.